Financial Crime Examples in Myanmar: A Growing Threat to Global Security

The Rise of Cyber Scams in Southeast Asia

Southeast Asia has become a hotbed of cyber scamming, with organized crime groups operating in countries such as Cambodia, Laos, and Myanmar. These scams have resulted in hundreds of thousands of victims worldwide losing an estimated $75 billion between 2020 and 2024.

The Extent of the Problem

• Over 200,000 people have been trafficked into Myanmar and Cambodia to execute these online scams.
• Thousands of people are forced to work in abusive conditions in cyber scam centers.

The Scam Method: “Pig Butchering”

The scams typically involve victims being contacted through text or online messaging apps and being swindled into investing in phony cryptocurrencies. This scam is known as “pig butchering,” where scammers claim to make huge profits from trading cryptocurrency but instead steal the victim’s money.

Countries Impacted

• Myanmar has been identified as a key location for these scams, with many of them originating from the country’s eastern region bordering Thailand.
• Neighboring countries, including China and Thailand, have become major concerns due to the impact of these scams on their citizens.

International Response

China’s Efforts

China has taken action against the scams, with law enforcement pressuring local ethnic militias to hand over Chinese nationals and close scam centers. Since October 2023, China has repatriated over 40,000 citizens from Myanmar.

Thailand’s Contributions

Thailand has also joined in efforts to combat the scams, assisting in a joint operation to repatriate nearly 1,000 citizens to China from Myanmar in March 2024.

Coordinated Sanctions

The United States, Canada, and the UK have imposed coordinated sanctions on individuals and entities involved with the scams. In one case, U.S. authorities seized $9 million worth of crypto, disrupting the financial infrastructure of a scam network.

Challenges Ahead

Policymakers are concerned about the future of scam operations in Myanmar, particularly given the transnational nature of the problem. Experts warn that these criminal enterprises can easily elude a crackdown by dispersing their operations across borders.

The Need for International Collaboration

To combat the scams effectively, Washington will need to ramp up its international collaboration, including raising this issue with China as it has with its policy approach to fentanyl.